Gartmore Seeks Growth from an Agricultural Theme

Having entered a riskier stage in the investment cycle, it could pay to look at alternative investment themes, according to Bambos Hambi, head of MultiManager at Gartmore Investment Management. “This becomes especially pertinent as global growth, although still positive, appears to be slowing.”

Among alternative themes, agricultural stocks may prove to offer attractive possibilities. “A defining moment could be in prospect, as agri-inflation is on the rise, arable land is in short supply and there is increasing use of biofuels. Emerging economies, such as China and India, are seeing a change in the dietary habits of their population, particularly the middle-class segment. The Chinese are acquiring a taste for milk, while the appetite for meat is helping to drive up the cost of grain for cattle feed.” (Chinese Premier Wen Jiabao has written that he has a dream to provide every Chinese, especially children, sufficient milk each day.) Climate change is also a factor, as droughts hit certain parts of the globe. The MultiManager team recently took a position in an agricultural fund to make the most of this theme.